Law Union & Rock Insurance Plc has received approval of its shareholders for a two kobo cash dividend payout on every 50 kobo ordinary share for every shareholder whose name appeared on the company’s register at close of work on May 9, 2019.
This was one of the ordinary businesses transacted at the company’s 50th Annual General Meeting held recently at MUSON Centre, Lagos.
Speaking at the AGM recently the chairman of the Board of Directors, Mr. Remi Babalola, said the recommendation of two kobo dividend was part of the board’s commitment to continually enrich the company’s shareholders.
He added that the company has remained unrelenting in sustaining high corporate and ethical governance standards in its business through total compliance with every directive from regulatory authority, the National Insurance Commission (NAICOM).
On the company’s performance during the year ended December 31, 2018, he said the company closed the year with a modest performance with a over 117% increase in Net Benefits and Claims.
The company’s Gross Premium Written, he said rose slightly by 6.79% from N4.252 bn achieved in 2017 to N4.541 bn.
He said the net benefits and claims increased astronomically by 117% to N1.6 bn from N0.737 bn posted in 2017 while underwriting profit dropped significantly by 46.05% to N0.638 from N1.18 billion posted in the preceding year.
Babalola said based on the phenomenal increase in net benefits and claims, the company’s profit before tax fell significantly by 55.4% to N0.490 billion from N1.099 billion recorded in 2017.
He said the company is one of the top claim paying insurance companies as claim paid per premium earned is one of the highest in the industry.
The shareholders also approved the appointment of Mr. Ademayowa Adeduro as the Managing Director/Chief Executive Officer (MD/CEO) of the company with effect from November 2018.
Adeduro, who was speaking to the company’s shareholders for the first time, said the cyclical spike in the company’s net benefit claims accounted for the drop in the firm’s underwriting profit and the profit after tax, adding that steps have been taken to hedge against and smoothen out unexpected spike in claims in future.
On the company’s plans going forward, he said in line with it’s vision to become one of Nigeria’s leading insurers of choice, recognized for its professional competencies and performance, transformational leadership and sustainability remains their focus in 2019.
He said the company aims to champion the course in sustainable insurance in accordance with global best practices and also make business continuity a focal point.
While anticipating an improved economy in the immediate future, Adeduro listed a-six-point strategic initiatives for 2019 aimed at improving the company’s bottom-line.
He said they have learnt lessons from what went wrong in their 2018 performance and are determined to ensure it never happens again through significant growth of their top line and proper application of cost management.
“We have learnt the lessons of what went wrong in our 2018 performance and we are determined to ensuring this never happens again through significant growth of our top-line and holding back our cost ratio in claims, reinsurance, management and underwriting expenses.
“Finally, I look ahead with confidence, knowing that the tenacious pursuit of our strategic objectives coupled with undisputed support and expert guidance of our strong, ethical and independent Board of Directors will carry us to attaining our goals, make profit and gain competitive advantage,” he said.